Over the last few weeks we have been talking about how you can get started in business and the reasons why you should do so. We’re living in the Information Age, an era where becoming wealthy is much more possible than in the days of the Industrial Age.
We recently looked at how you can start a business from scratch by developing your own systems and also did a quick assessment of what you need to become and do in order to have success in the long run. The model we are going to look at in the next two posts is network marketing.
What is network marketing?
A simple definition that I got online is, “it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.”
With this business model a product is already in place that you can use and promote to your network of people. When they buy the product through your referral you get paid a commission for doing so. Not only that you can potentially get paid on the network of people that grow from your direct referral.
Another term used to describe network marketing is “multi level marketing” or mlm so they are pretty much used interchangeably.
Below are some of the characteristics of a network marketing business and why you should seriously consider it:
1. Low Cost
Even though we are now in the Information Age setting up a traditional type business can be pretty expensive including things like company registration, tax clearance, equipment, monthly overheads, etc. With multi level marketing the startup costs are generally low as well as the overheads.
To build a billion dollar company like McDonalds for example would require a significant investment but through this business model you can get started with a low entry point and still have the potential to build a business to the level of a McDonalds. Isn’t that amazing?
2. Proven systems
I mentioned in the previous posts that in the traditional business model you normally set up your own systems to operate your business. In network marketing the systems are already set up for you including the administration which allows you to focus solely on marketing the products.
The really great companies have good marketing material as well to help you be successful as you build your business. Even better than that is having the right leadership in place that can help you learn the right skills to build your business as opposed to doing trial and error in a traditional business.
A common phrase used in this business model is, “you earn while you learn”
Keeping in mind that at least 90% of businesses fail in the first five years multi level marketing allows you to work on your business part-time while at a full-time job. This gives you time to learn and build the business with a safety net in place up until you can afford to quit your full-time job when your business generates a significant amount of income.
That is the route that most people take with little to no business experience whatsoever but overtime they become really successful as they diligently build the business.
4. International and scalable
This is where the power of the Internet really comes into play. Very few traditional businesses ever go international but with network marketing it is almost standard practice. You can literally become an international business owner as a network marketer as you can sell your product of choice to people in markets beyond your borders. In other words your income does not have to be dictated by the economy of where you live.
There is also no real cap on how much money you can earn in network marketing. As long as you’re willing to put in the effort you can make as much money as you choose as opposed to a job where there is a cap to what you can earn no matter how hard you work. Network marketing uses the concept of leverage to multiply your efforts through the team of representatives that join your network.
I hope you have learned something of value that you can use to make a decision on getting into business. Remember to share the post using the social share buttons on the page as well as to share your thoughts in the comments section below.
Also get your FREE! copy of The 7 Pillars to Grow a Business That Lasts by clicking on the call-to-action below. Stay tuned for the next post where we are going to look at what to consider about joining a network marketing business. Until next time,
Be all you can be!